FIVE GUYS (Fast Food)

Business Environment

Size, sector and type of business
 Five guys is a large sized restaurant chain of US which
operates in the food sector.
 It is the fastest growing restaurant of UK. In order to
assess the external business aspects of firm researcher
undertakes PESTLE and Porter five forces analysis.
 It provides assistance to the restaurant in framing suitable
policies and strategies. For in-depth analysis, theme is
prepared by the researcher in terms of political, economic
etc.

PESTLE analysis
 Political factors: Political system of US is highly stable.
 Economic factors: Economic condition of US has been
growing; thus it assists the business entities.
 Social factors: Supportive for Five Guys

Continued...
 Technological factors: Positive impacts have been seen.
 Legal factors: Consumer law and health and safety law
have high level of impact
 Environmental factors: Businesses are getting assistance
from environmental factors.

Porter five forces analysis
 Bargaining power of buyer: Bargaining power of buyer is
low to some extent.
 Bargaining power of suppliers: Bargaining power of
suppliers are also low.
 Intensive competitive rivalry: Level of competition is high
in fast food industry.

Continued...
 Threat to substitute products: Large number of substitutes
of burger are present in the market.
 Threat to new entrants: Threat of new entrant is high

Ansoff matrix
 Market development: Five Guys restaurant chain can grow
by offering their product in new markets.
 Market penetration: It is kind of pricing strategy in which
marketer make focus upon the selling of product alt
competitive or lower prices.

Continued...
 Diversification: Entry can be made to new markets.
 Product development: Five Guys restaurant can
come up with new products.

Evaluating key changing factors and its impact on Five
Guys
 Changes in the taste and preferences of the customers
 Competitors offering
 Technological aspects:

REFERENCES
Botha, A., Kourie, D. and Snyman, R., 2014. Coping
with continuous change in the business environment:
knowledge management and knowledge management
technology. Elsevier.
Chesbrough, H.W. and Appleyard, M.M., 2007. Open
innovation and strategy. California management
review. 50(1). pp.57-76.
Grundy, T., 2006. Rethinking and reinventing Michael
Porter's five forces model. Strategic Change. 15(5).
pp.213-229.